Business Strategy for Software Executives
January 28, 2008
Re-learning Marketing for the SaaS Model
Running an on-demand business means software CEOs must understand and embrace the differences between the traditional and SaaS models – especially in sales and marketing.
By Steve Adams, Sabrix
Entrepreneurs, investors, and industry pundits continue to examine how the emergence of SaaS has altered the dynamics of everything from go-to-market strategies to technology hurdles to budget management and market valuations--all leading to dramatically different operating and financing strategies.
The challenge of understanding and managing the key differences in the two business models is nowhere more profound than for the CEO who has spent his or her career in traditional on-premise, perpetual license businesses and is launching a SaaS company or the CEO who has a going concern in traditional enterprise software and is considering a transition to or the addition of a SaaS offering.
Regardless of whether an executive team is going to launch a SaaS company, transition to a SaaS model, or attempt the high risk maneuver of managing a hybrid model (a challenge considered by many to be a fast path to operational and financial suicide), executive teams must quickly grasp the key differences in the two business models and make unequivocal decisions if they hope to grow their companies, to finance their growth, and to return shareholder value.
Enabling Innovation – the Open Source Way
Enterprise adoption of open source software has become mainstream. Rajeev Pradhan of Cognizant Technology Solutions runs through several aspects of open source deployment that businesses must consider in this week’s post to the SandHill.com Blog, “Enabling Innovation.”
The “Dos” and “Don’ts” of Divestiture
In the consolidation crazy software industry, divestitures continue to be a healthy way restructure or raise capital. But Helene Abrams of eprentise says the divestiture process can be dangerous if too much information is disclosed. Read her tips about handling data during a divestiture in this week’s post to the SandHill.com blog on software finance.
Publish Your Perspective!
SandHill.com wants your opinions. Send your thoughts on the enterprise software industry to SandHill.com editor, Maryann Jones Thompson (firstname.lastname@example.org) and have your opinions published on our site.
DON’T MISS: Harnessing the Power of Informal Employee Networks
Formalizing a company's ad hoc peer groups can spur collaboration and unlock value. Uncover strategies for success in this article from The McKinsey Quarterly. Read how in this article from The McKinsey Quarterly.
News Update: New Kids on the Block
Software’s parents show off their new kids – Atlantic, Bluehouse, MozyEnterprise and LoopFuse; mixed earnings in a crazy market, Microsoft moves closer to Citrix and Gates pledges big at Davos. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: Success with Multiple Models?
Can software companies thrive with more than one business model? Or must vendors choose a single path to success?
Last week, readers estimated what portion of their company’s software usage is unlicensed.
More at SandHill.com:
Demo starts today in Palm Springs.
Master data platform management maker, Siperian, received $25 million.
IBM bought AptSoft; HP got Exstream Software.
Web infrastructure management vendor, Hyperic, named Dick Williams as chairman of the board.
Send us your feedback on this newsletter and the SandHill.com site.
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